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Subject:  Re: OT: a bit - where to put liquid savings. Date:  3/5/2004  12:16 PM
Author:  Watty56 Number:  39699 of 88435

If you have a mortgage then consider paying down the mortgage. If your mortgage is at 6% and you are in a marginal tax bracket of 33.3% then you will be effectively be “earning/saving” 4% on anything you pay down. Much better than the effective 1.33% (2% * 33.3% marginal tax rate) that you might get elsewhere.

If you need the money in the future you can get a home equity line of credit to take the money back out.


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